Question

Suppose Yon Sun Corporation's free cash flow during the just-ended    (t = 0) year was $150...

Suppose Yon Sun Corporation's free cash flow during the just-ended    (t = 0) year was $150 million, and FCF is expected to grow at a constant rate of 4% in the future. If the weighted average cost of capital is 13%, what is the firm's value of operations, in millions? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Value of operations=FCF1/(WACC-Growth Rate)

=(150*1.04)/(0.13-0.04)

which is equal to

=1733.33 million(Approx).

Add a comment
Know the answer?
Add Answer to:
Suppose Yon Sun Corporation's free cash flow during the just-ended    (t = 0) year was $150...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT